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Genting Group Issuer Flash: Q1 2026 Results

Genting Group Issuer Flash: Q1 2026 Results

Report date: 2026-05-25 Event date: 2026-05-21 Event title: Q1 2026 Results

1. Flash Conclusion

Genting Group / Genting Berhad ("Genting")'s Q1 2026 results do not materially change the view set out in the latest issuer_summary: the group continues to preserve its investment-grade profile, but investment burden remains high and rating headroom is thin. In Q1 2026, revenue increased modestly to RM6.66bn, while profit attributable to owners of the parent improved to RM101.1mn. However, adjusted EBITDA declined 8% year on year to RM1.83bn, and PBT fell 26% to RM463.3mn. From a credit perspective, the results therefore show both that earnings have avoided a sharper downside break and that investment, cost and FX pressures continue to compress financial flexibility.

There are clear reasons not to overstate the improvement in the credit view. The recovery in profit attributable to the parent was helped by a low prior-year base, lower impairment losses and improved share of results from associates and joint ventures. Underlying operating earnings power remains weak, as indicated by the EBITDA decline. Core leisure and hospitality revenue increased, but Singapore's RWS continues to face cost, FX and competitive pressures, while Genting Malaysia moved into loss due to costs related to RWNYC's transition to a commercial casino. Capital-structure and capex issues, including GOHL refinancing, subordinated perpetual securities, RWNYC-related funding, RWS 2.0 and RWLV improvement investments, have not been resolved by this Q1 result alone.

2. What Was Announced

On 21 May 2026, Genting announced its unaudited consolidated results for the first quarter ended 31 March 2026. The official press releases page and Bursa/KLSE quarterly report page confirm that the results were announced on the same day and that they were unaudited.

Metric Comparative value Q1 2026 Initial credit read-through
Revenue RM6,508.0mn RM6,664.6mn Revenue increased by just over 2%. Demand has not broken down, but it is difficult to call this a reacceleration.
Adjusted EBITDA RM1,990.6mn RM1,825.6mn Down 8%. Operating earnings power remains in recovery mode due to FX translation headwinds and higher costs.
Profit before tax RM626.2mn RM463.3mn Down 26%. EBITDA decline and finance costs need to be reviewed.
Profit for the period RM277.6mn RM217.2mn Consolidated net profit declined. This should be assessed separately from distributable earnings to the parent, given non-controlling interests.
Profit attributable to ordinary equity holders of the parent RM4.6mn RM101.1mn Profit attributable to the parent improved. However, the absolute amount remains thin relative to the scale of the group.
Basic EPS 0.12 sen 2.63 sen Improvement from an extremely low prior-year base.
Proposed / declared dividend 0.00 sen 0.00 sen No dividend at the Q1 stage. This points to preservation of funding flexibility.
Net assets per share RM7.71 (end-2025) RM7.61 Slight decline from end-2025. Comprehensive income, FX and capital allocation need to be reviewed.

At the segment level, leisure and hospitality revenue was reported to have increased 4% year on year to about RM5.54bn. Resorts World Genting in Malaysia improved, mainly due to gaming. In contrast, Singapore's Resorts World Sentosa recorded revenue of about RM1.9bn and EBITDA of RM568.5mn, but the company's explanation was limited to stating that RWS gaming revenue improved toward the end of the quarter; it is too early to confirm a full-year recovery. In the US and Bahamas, the key points are the consolidation effect of Genting Empire Resorts LLC, the contribution from RWLV, and RWNYC's transition to a commercial casino. Genting Malaysia moved into loss due to pre-opening expenses related to the RWNYC transition.

In non-leisure businesses, Plantation revenue increased, but EBITDA declined due to weaker palm product prices. Power earnings improved on better operations at the Banten plant, while Oil & Gas deteriorated due to lower crude oil prices and lower production. The centre of credit quality remains leisure and hospitality and the recovery of returns from major investments.

3. Credit Read-Through

Q1 2026 provides evidence that Genting's operating base has not broken down. Revenue increased, and profit attributable to the parent recovered from a level close to zero in the prior-year period. Improvements in Malaysia, the US/Bahamas and Power also demonstrate the benefit of diversification.

However, headroom as an investment-grade credit has not yet expanded. The 8% year-on-year decline in adjusted EBITDA is more important from a credit perspective than the modest increase in revenue. At end-2025, Genting had total borrowings of RM40.81bn and cash and cash equivalents of RM18.00bn, while investments in RWS 2.0, RWNYC, RWLV, Kasuri / FLNG and other projects were continuing. If investment and refinancing move ahead before Q1 EBITDA recovers, the recovery in rating headroom will be delayed.

It is also necessary to distinguish between the Singapore and Malaysia subsidiaries. RWS is a high-quality asset, but Q1 still showed EBITDA decline and FX translation headwinds. Genting Malaysia generated revenue growth, but moved into loss due to RWNYC transition costs, highlighting a structure in which growth options weigh on the subsidiary's near-term earnings and borrowings.

Accordingly, the improvement in Q1 profit attributable to the parent alone should not justify upgrading the holding view. For Genting credit, the key variables are not consolidated profit, but EBITDA, operating cash flow, capex, subsidiary dividends, parent-level liquidity, the remaining GOHL 2027 notes, distribution burden on subordinated perpetual securities, and RWNYC funding arrangements. Live bond prices and spreads have not been checked, so this flash does not provide a relative-value view.

4. What To Watch Next

The top priority is adjusted EBITDA and operating cash flow from Q2 2026 onward. The key question is whether the improvement in RWS gaming revenue translates into EBITDA, and whether the visitor impact from RWS 2.0 and new facilities can absorb higher costs and competition.

The next area to monitor is RWNYC and RWLV. RWNYC's conversion into a commercial casino is a growth driver, but transition costs, licence fees, capex, US subsidiary borrowings and initial earnings impact will come first. RWLV could lift US EBITDA if MICE, premium play, occupancy, ADR and use of hotel customer data improve.

The third area is capital structure. Following the April 2026 tender for GOHL Capital 2027 notes, GOHL Capital Holdings subordinated perpetual securities and RWNYC-related financing, the next review should examine how the group's total borrowings, cash, short-term maturities, hybrid treatment and distribution burden have changed. The guarantee, keepwell, security, subordination, negative pledge, cross-default and change-of-control provisions of individual bonds have not yet been comprehensively reviewed in this flash.

5. Sources

6. Unverified / Pending